IDFC First Bank focused on big picture

IDFC First Bank announced its first quarter results on the 31st of July revealing an overall loss of ₹630 crores down from a benefit of 94 crores in Q1FY21. The Total pay, net of revenue cost, for the bank became 36% YoY and Net Interest Income became 25% YoY and 11% QoQ. The Net revenue edges have strengthened consistently across quarters from 4.86% in Q1FY21 to 5.09% in Q4FY21 and to 5.51% in Q1FY22.

This quarter additionally saw the bank deliver its highest ever core pre-provisioning operating profit. The drag on profit though, was because of arrangements, which have been high across the sector this quarter. The bank accommodated ₹1879 crores of provisions of which ₹350 crores were Coronavirus explicit. The Gross NPAs remain at 4.61% and Net NPAs at 2.32%. The PCR came in at 50.86%.

ET Now spoke with Mr. V Vaidyanathan, CEO and MD of IDFC First Bank, who explained that a conservative provisioning formula has been received by the bank ensuring that provisions are upfronted. He believes Q2FY22 provisions will be lower than Q1FY22 and Q3 and Q4 of FY22 to be even lower than Q2.